GTA house prices rise, defying pandemic
Pent-up demand, shortage of listings will continue to boost prices, expert says
Detached home values in the Greater Toronto Area have not only held their own, but have seen significant gains through the first half of the year as the region’s housing shortage persists, according to a report from Re/Max.
The average price of a house rose in 95 per cent of the 65 neighbourhoods on the Toronto Region Real Estate Board’s (TRREB) Multiple Listings Service map.
In the City of Toronto, 60 per cent of those neighbourhoods saw double-digit increases as did half of those in the 905 communities between January and June.
But the shortage of homes transcends all housing categories, said Re/Max regional executive vice-president Christopher Alexander.
Even though home sales stalled in late March and April, pent-up demand and a shortage of listings is going to continue to boost prices, he said.
“Our inventory challenges are severe and we need a plan from all levels of government to tackle it. Until we find a way to create more housing we’re going to continue to have upward pressure on pricing,” he said.
The 2020 Hot Pocket Communities report showed the six Toronto MLS districts with the greatest average price gains were:
á The Annex, Yonge-St. Clair, Casa Loma, Wychwood (C02 on the MLS map) where detached houses sold for 25.7 per cent more year over year in the first six months — $2.9 million on average.
Oakridge, Birchcliffe-Cliffside (E06), which saw an 18.4 per cent gain to an average price of $1.1 million.
Houses in High Park, Swansea, Roncesvalles, South Parkdale (W01) also saw an 18.4 per cent appreciation to $2.06 million.
Oakwood-Vaughan, Humewood, Cedarvale, Forest Hill South (C03), which saw a 17.7 per cent gain to about $2.4 million.
The W08 area of Etobicoke that includes Islington-City Centre West, Etobicoke-West Mall, Markland Wood, Eringate-Centennial-West Deane, Princess-Rosethorn, Edenbridge-Humber Valley, Kingsway South, where the average price rose 17 per cent to about $1.7 million
The average price in Alderwood, Long Branch, New Toronto, Mimico (W06) rose 16.2 per cent to $1.2 million.
Although based on relatively few sales, the gains remain meaningful, Alexander said.
“It indicates that the professionals that still have their jobs and job security are driving the market right now,” he said.
Although sales were down in many areas, six MLS districts saw a growth in sales, the King area of York Region; the Bridle Path, York Mills and Sunnybrook (C12 on the TRREB map); Innisfil and Oshawa all saw double-digit sales growth.
With the exception of the Bridle Path, the GTA’s most expensive real estate area, affordability was the common denominator in the other hot-selling districts, said Re/Max. Those areas had an average price of between $600,000 and $650,000.
Some of those homowners are moving out to recreational markets “that are going berserk right now,” as people move to less populated areas at a time when they can’t travel by plane, said Alexander.
But he believes that trend will be shortlived. Alexander also said that the slower growth in the condo segment is temporary.
“The more expensive and unaffordable the freehold sector becomes, it’s going to drive people back to condominiums,” he said.